Affiliate marketing is the most flourishing way of earning money online by bloggers and web advertisers. It can be defined as a process where you promote a product by referring it to a potential online buyer and when that individual purchases the item in view of your proposal, you get a commission. The commission varies from product to product. Merchant site keeps a record of who is sending the traffic and making the sales by tracking a unique link given to buyer by the Affiliate Company or Product Company.
This whole procedure of affiliate marketing can be divided into different stages:-
Stages I- Online shopper decides to buy a product online and end up landing on affiliate site.
Stage II- The affiliate site redirects him to the merchant site.
Stage III- The shopper purchases the product from merchant site.
Stage IV- The affiliate site gets its commission for the purchase.
On account of advancing consumer products, like tools, books, toys and household items, the biggest network, by far, is of Amazon. Their Amazon Associates program lets you advertise any item that is sold on their platform. Anyone can sign up and then generate custom links to Amazon products. If someone purchases through your link, you earn a small commission.
There are two ways of approaching affiliate marketing. Either you can become a merchant and have others promote your product, in exchange for giving them a commission from the sales that they make or you can become an affiliate for one or several products that you’d like to promote and market those to consumers, in order to make money. Most people start by taking the affiliate route and then gradually go on to become merchants.
It’s a common belief that affiliate marketing is profitable only for company’s which are popular and has big market. This is true at some level, but that doesn’t mean small companies do not have a chance at success. They just need to work in accordance with the goal and objectives of their organization and find affiliates who understand the relevance of working in a market where you are comfortable.
However, one needs to understand an affiliate marketing program is a lot of work, and in most situations there’s a lot of competition so you’re not going make fortunes immediately. It will take time, effort and lot of patience on one’s part to become successful here.